A brokerage cartel?

If you're in need of a pep-talk before you try to negotiate your real estate broker's commission down a percentage point or two, read the report released today by the Consumer Federation of America, "How The Real Estate Cartel Harms Consumers and How Consumers Can Protect Themselves." Their complaints about the industry are hardly new ones (state real estate commissions populated by brokers, industry resistance to discount and limited-service brokers, delayed disclosure of who an agent represents in a given transaction). CFA's report says, "Sellers can often persuade brokers to knock one percentage point off the standard 6% or 7% commission and possibly even two points if the home is expensive or brokerage services are limited. Moreover, they should insist that if their broker double-dips (receives the share of commission paid to the seller's agent and to the buyer's agent) the commission be reduced another percentage point or two." CFA's Executive Director Stephen Brobeck says double-dipping brokers should receive no more than 4% commissions.